Overnight US stocks | The three major indexes continued to decline, while the settlement price of Brent crude futures rose above $101. SK Hynix (SKHY.US) increased by 7%.

On Wednesday, the U.S. stock market fell for the third consecutive trading day, with Brent crude futures closing above $101. U.S. Treasury yields surged after the Treasury Department announced it would double the size of its long-term government bond repurchase operations to $6 billion. This move follows last month's announcement by the Treasury to at least double the size of government debt repurchases. U.S. StocksAt market close, the Dow Jones Industrial Average dropped 405.41 points, or 0.77%, to 52,380.66 points; the S&P 500 index declined by 37.16 points, or 0.48%, to 7,636.36 points; and the Nasdaq fell by 168.07 points, or 0.64%, to 26,253.34 points. Apple Inc. (AAPL.US) fell 0.2%, SK Hynix (SKHY.US) rose 7%, AMD (AMD.US) increased 3%, and Meta Platforms (META.US) climbed 6.5%. The Nasdaq China Golden Dragon Index closed down 2.08%, with Alibaba Group Holding Limited Sponsored ADR (BABA.US) falling 2.8%. European StocksThe German DAX 30 index fell 408.73 points, or 1.57%, to 25,584.19 points; the UK's FTSE 100 index dropped 142.34 points, or 1.32%, to 10,669.32 points; the French CAC 40 index decreased by 161.31 points, or 1.94%, to 8,156.67 points; the Euro Stoxx 50 index fell 100.42 points, or 1.57%, to 6,312.75 points; Spain's IBEX 35 index dropped 305.77 points, or 1.53%, to 19,691.33 points; and Italy's FTSE MIB index declined by 307.97 points, or 0.59%, to 51,869.50 points. Asian StocksThe Nikkei 225 index fell 0.19%, while the Korea Composite Index rose 1.4%. U.S. Dollar IndexThe U.S. dollar index, which measures the dollar against six major currencies, rose 0.03% and closed at 98.817. As of the end of the New York foreign exchange market, 1 euro was exchanged for 1.1630 dollars, up from 1.1629 dollars in the previous trading day; 1 pound was exchanged for 1.3546 dollars, down from 1.3547 dollars; 1 dollar was exchanged for 153.60 yen, down from 153.61 yen; 1 dollar was exchanged for 0.8103 Swiss francs, up from 0.8090 Swiss francs; 1 dollar was exchanged for 1.3806 Canadian dollars, up from 1.3781 Canadian dollars; and 1 dollar was exchanged for 9.6009 Swedish kronor, up from 9.5816 Swedish kronor in the previous day. CryptocurrencyBitcoin fell by 0.52% to 78,137 yuan; Ethereum dropped over 1% to 2,461 dollars. Crude OilAt the end of the day, light crude oil futures for October delivery on the New York Mercantile Exchange rose by 3.02 dollars, closing at 96.05 dollars per barrel, a gain of 3.25%; November delivery of London Brent crude oil futures rose by 3.29 dollars to 101.21 dollars per barrel, an increase of 3.36%. Precious MetalsSpot gold was reported at 4,400.93 dollars per ounce; spot silver was at 67.308 dollars per ounce. The World Gold Council stated that global gold ETFs attracted 18 billion dollars in inflows in August, marking the second-largest single-month inflow on record, pushing total assets under management to 615 billion dollars and holdings to a historical high of 4,189 tons. North America recorded the third-largest single-month inflow historically, while Europe posted its strongest monthly performance ever, together accounting for nearly 90% of global demand. Activity in the gold market rebounded significantly, with the average daily trading volume in major market segments increasing 21% month-over-month. Macro News The continued decline in U.S. Treasury bonds following the repurchase announcement reflects market sentiments that the 6 billion dollar cap is insufficient. The U.S. Treasury Department stated that in the first operation of the expanded repurchase plan, it will buy at least 4 billion dollars and up to 6 billion dollars of long-term government debt, demonstrating Secretary Bessen's determination to curb the recent rise in borrowing costs. U.S. Treasury bonds continued their earlier decline after the announcement, indicating that the scale of the repurchase was smaller than some investors had expected. The success of expanding the purchasing plan remains to be seen. Following the initial announcement of the plan last month, yields fell, but subsequently rebounded. The benchmark 10-year yield reached its highest point in 2023 last week. Economist Guha, a former employee of the New York Fed, said, "The challenge is always whether the impact of these interventions can be sustained without greater fundamental changes." Furthermore, the maximum size of the repurchase operation does not mean the Treasury will necessarily purchase that amount of Treasury bonds. However, in repurchases targeting long-term nominal debt, the department typically buys the full amount; since the program was reintroduced in 2024, there have only been two instances in 52 such operations where they did not do so. Sources: Pakistan requests Iran to restrain the Houthis. According to reports from Saudi, Pakistani, and Iranian sources, Pakistan has issued a warning to Iran on behalf of Saudi Arabia, asking it to restrain its Yemeni Houthi forces after the Houthis increased their attacks on Saudi Arabia. Pakistan's warning carries significant weight due to its defense agreements with Saudi Arabia and Turkey. Senior regional diplomats indicated that Pakistan conveyed this message to Iran within the last 24 hours, urging Tehran to use its influence to prevent the Houthis from attacking Saudi Arabia. An Iranian senior official confirmed that Pakistan conveyed this message to Tehran on Tuesday, to which Tehran responded: "Iran does not control the Houthis." However, two Iranian sources indicated that Tehran had requested the Houthis to launch attacks on Saudi Arabia last week. Tehran promised additional funding and weapons, and several commanders from the Iranian Revolutionary Guard have traveled to Yemen to coordinate the attack operations. A Pakistani source stated that Saudi officials have met with senior military representatives from Pakistan and Turkey in Riyadh to coordinate response measures. The three countries agreed that Saudi troops would not enter Yemen, and any response would be launched from Saudi territory. Bessen publicly pressures the Bank of Japan to raise interest rates and claims to possess asymmetric information. U.S. Treasury Secretary Bessen's public pressure campaign to strengthen the yen has heightened market expectations for an unprecedented monetary tightening action by the Bank of Japan, which has not been seen in over a generation. If policymakers fail to deliver, the market may experience turmoil. In an unusual market verbal pressure, the U.S. Treasury Secretary boasted on Tuesday that he had "asymmetric information" about the Bank of Japan's next moves, referring to himself as a "dealer." At an event at Southern Methodist University in Texas, this former hedge fund trader did not limit his comments to the central bank, claiming to know what "Japanese policymakers" generally plan. Bessen did not specify what he wanted, but just last week, he publicly urged Japanese officials to "do the right thing" on interest rates. The market expects a 25 basis point rate hike next week, and pressure is mounting for Bank Governor Ueda to convey a sufficiently strong signal for future tightening during the meeting to avoid disappointing the market and erasing the recent gains of the yen. Bessen's remarks highlight his unusually high level of involvement in Japanese economic policymaking, as Japan is the largest foreign holder of U.S. debt. At the end of July, he coordinated with Japan's Finance Minister for the first joint intervention since 1998 to support the yen. EIA expects gradual recovery of Middle Eastern oil supplies, with Brent crude prices dropping to $74 per barrel by 2027. The EIA Short-Term Energy Outlook report states that Middle Eastern oil production is expected to increase in the coming months, primarily due to the gradual rise in oil transportation through the Strait of Hormuz, as well as the utilization of alternative export routes outside the region. However, the EIA assumes that export restrictions on Middle Eastern oil will remain in place until the end of this year, thus crude oil production in the region is expected to remain below pre-conflict average levels until the second quarter of 2027. The EIA forecasts that Brent crude spot prices will average around $90 per barrel in the second half of 2026, with prices expected to gradually decline to an average of $74 per barrel as oil production increases and inventories recover. Individual Stock News Apple Inc. (AAPL.US) releases its first foldable iPhone Duo, starting at $1,999. Apple Inc. launched its first foldable phone, the iPhone Duo, featuring a 7.6-inch inner screen when unfolded the largest display in the history of iPhone; when folded, it features a 5.4-inch outer screen, with the screen area equal to 90% of the iPhone 18 Pro. Both screens support ProMotion, always-on display, and up to 3,000 nits of outdoor brightness. The new device uses a five-level titanium body and a precision hinge made from over 100 components, supports IP68 dust and water resistance, and integrates Touch ID into the side button. The iPhone Duo is powered by a 2-nanometer A20 Pro chip and a custom heat plate, with sustained performance up to 35% higher than the iPhone 17 Pro, supporting split-screen operation of two apps simultaneously; it features a 48-megapixel main camera and a 48-megapixel ultra-wide camera, and its folding design allows for selfies using the rear camera and live previews on the outer screen. The new device uses a dual battery architecture, supporting up to 44 hours of video playback when using the outer screen. The iPhone Duo is available in Star White and Night Sky colors, with storage options of 256GB, 512GB, 1TB, and 2TB, starting at $1,999 in the U.S.; pre-orders begin on October 16, and it will officially go on sale on October 23, premiering in China and over 70 other countries and regions. Dow, Inc. (DOW.US) is considering divesting its 35% stake in Sadara, and Saudi Aramco may acquire it to increase its holding. Sources revealed that Dow, Inc., a global leader in materials science, is considering exiting its $20 billion petrochemical joint venture with Saudi Aramco as part of the U.S. companys efforts to reshape its portfolio amid long-term industry downturns. As of last year, Dow, Inc. held a 35% stake in the joint venture named Sadara, with Saudi Aramco owning the remainder, which might take this opportunity to acquire Dow, Inc.'s shares and increase its holdings. The sources indicated that other strategic or financial investors may also bid for Dow, Inc.'s stake. A final decision has not yet been made, and the company may ultimately decide against the transaction. Sadara was established in 2011 to develop an integrated chemical park with total investments exceeding $20 billion. It operates 26 production units, producing over 3 million tons of chemicals and plastics annually. In the process of investment, Dow, Inc. has incurred risk exposure to Sadaras debt, including a guarantee for a $500 million revolving credit facility to help finance its potential funding shortfall. According to Dow, Inc., Sadara withdrew $80 million from this facility in the fourth quarter of 2025.